Goldman Sachs (GS) is having itself a make or break moment.
Hold the trend-line, the stock could easily see $170 in the coming weeks, but fall apart here, and the $140’s will be its likely destination.
GS also has going in its favor the 3rd test of that trend-line, which I always consider to be the optimal time to play a pullback to the trend-line. However, I think a $170 price ceiling isn’t enough for me to warrant getting in on the trade. I would want a $10 stop-loss at around $148 which is only slightly less than the upside that it exhibits – not the ideal risk reward. However, if it can break $170 – well then…all bets are off.
